– MPower completes design phase
– Battery energy storage to augment the grid
– Incorporates innovative microgrid functionality
– Sophisticated control system developed by MPower
– To be fully operational by the summer of 2018
Sydney – 31 July 2018 – Tag Pacific Limited (ASX: TAG)
Tag Pacific Limited (ASX: TAG) is pleased to advise that assembly of Endeavour Energy’s grid support battery is underway at MPower’s facility in Sydney and is on track to be fully operational by the summer of 2018. The battery energy storage system (“BESS”) will help to reduce network capital costs and augment grid capacity, quality of supply and reliability for customers in the Illawarra region of NSW.
Nathan Wise, Tag Pacific’s CEO said: “MPower’s BESS will also be capable of disconnecting from the grid and operating as an islanded microgrid to provide power to local residents during times of power outages on the main grid. This is a first for this area of the National Electricity Market.”
MPower has developed a sophisticated and proprietary control system to enable its BESS to operate in both grid augmentation and islanded microgrid modes. Design work has been completed following comprehensive modelling and analysis which was undertaken to develop the network protection regime required for both operating modes.
The project was announced by Endeavour Energy in October 2017.
Battery energy storage technology is expected to experience exponential growth as the cost of battery storage progressively falls and as recognition of the benefits of the technology becomes more widespread.
On 28 June 2018, Tag announced that it had signed an Implementation Deed to acquire Energy Made Clean, a subsidiary business of Carnegie Clean Energy Limited (ASX: CCE) to create a leading renewable energy, battery storage and microgrid specialist in Australia, New Zealand and the Pacific. Following completion of the transaction, Tag will be renamed MPower and the number of shareholders will increase by virtue of Carnegie’s 10,000+ shareholders receiving a direct shareholding via an in specie distribution to be undertaken by Carnegie.
MPower’s battery energy storage system during the assembly phase.
The combination of MPower and Energy Made Clean brings together two businesses with established track records in the growing off-grid and fringe-of-grid solar, battery storage and microgrid market.
MPower and EMC would have had combined pro forma revenue in FY2018 in excess of $50 million. In line with market growth expectations, revenue of the enlarged group is expected to increase in FY2019 and beyond. The combined entity would start FY2019 with a combined committed order book of circa $20 million and once the MPower and EMC businesses are fully integrated, the combined business is expected to have sufficient scale to enable profitability to be achieved.
Nathan Wise, Tag Pacific’s CEO said: “MPower is an industry leader providing innovative, reliable power solutions on a national and international level. We are excited by the opportunity to combine the advanced capabilities of both MPower and Energy Made Clean to deploy future microgrids featuring next generation battery energy storage technology.”
Indicative Human Machine Interface on MPower’s BESS.
Tag Pacific Limited is a Sydney-based investment house listed on the Australian Securities Exchange with a focus on niche areas of the power industry. Tag has invested in a diverse range of companies and activities that have been brought together primarily to operate under the banner of MPower. The company’s mission is to invest in the power industry in a manner that creates and enhances value over time.
MPower is an Australian owned and operated subsidiary of Tag Pacific Limited and is an industry leader providing innovative, reliable products and power solutions on a national and international level. Our capabilities are like no other; we combine new and old technologies with a skilled and experienced workforce to create dependable products and power solutions that last the distance. Put simply, we have the energy to deliver and can create products and solutions from solar panels and batteries to engineering, technical support and full turn-key systems.
FORWARD LOOKING STATEMENTS
All statements other than statements of historical fact included in this document including, without limitation, statements regarding future plans and objectives of Tag, are forward-looking statements. Forward-looking statements can be identified by words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “future”, “intend”, “may”, “opportunity”, “plan”, “potential”, “project”, “seek”, “will” and other similar words that involve risks and uncertainties. These statements are based on an assessment of present economic and operating conditions, and on a number of assumptions regarding future events and actions that are expected to take place. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of Tag, its directors and management that could cause Tag’s actual results to differ materially from the results expressed or anticipated in these statements.
Tag cannot and does not give any assurance that the results, performance or achievements expressed or implied by the forward-looking statements contained in this document will actually occur and investors are cautioned not to place any reliance on these forward-looking statements. Tag does not undertake to update or revise forward-looking statements, or to publish prospective financial information in the future, regardless of whether new information, future events or any other factors affect the information contained in this document, except where required by applicable law and stock exchange listing requirements.
For further information please contact:
Chief Executive Officer
Tag Pacific Limited
T: +61 2 8275 6000